Obama spotlights job, energy policies

HOLLAND, Mich. (WOOD) - When President Obama arrives in Holland Thursday afternoon to visit Johnson Controls, it will spotlight both his jobs and clean energy initiatives.

The company is in the new advanced battery industry.  Though it currently has fewer than 1,000 workers, the industry overall is getting a lot of attention from the federal government.

"The reason for this visit is it is a perfect opportunity for us to highlight the cross section between two important policies," said White House Advisor on Energy and Climate, Heather Zichal. Those two policies are "job creation and investment in clean energy."

First, clean energy. Good car batteries eliminate the need for gasoline. The key to the process is trying to develop a new battery that performs as well as, or better, than the old style. Right now, cars like the Prius use a combination of both gasoline and electric, which is known as hybrid technology.

But, now there are cars that run completely on battery power like the Nissan Leaf and the Chevrolet Volt.

Nissan and General Motors say they are on target to sell 10,000 of those battery-powered vehicles this year. But the two companies realize the demand for the newer models depends on a number of factors -- the price of gasoline and the desire for a consumer to buy a more expensive, environmentally friendly, electric vehicle.

Government leaders hope the promotion of the development of better built batteries will help to change all of that.

"Just a few years ago, the US had about 2% of the battery market," said Zichal. "And in a matter of years, we will have 40%."

However, it seems that the entire situation is a bit like the old saying, 'which comes first, the chicken or the egg?'

On one hand, consumers will not buy electric cars until they have a good reason. And on the other, private industries will not make the investment to develop high performing batteries unless they know the demand is there. 

This is where the government comes in.

Federal tax dollars by way of grants and loan guarantees are being spent in support of advanced battery manufacturing.

"In order to improve the economy, we need to make these strategic investments," said Zichal. The White House believes the best part of the energy plan is the projected jobs the extra money will create.

Manufacturers told 24 Hour News 8 they are betting on advanced batteries having broader applications than normal gasoline-run car batteries.

For example, the new batteries could be used at wind and solar plants to store power during non-generating, high demand times, like during the night.  Manufacturers are also hoping there will be demand for batteries in military operations and the telecommunications industry.

Still, many are admitting it is hard to make projections about what the future may bring.  Regardless, the White House and manufacturers hope research and development will change that.

"The president has set an ambitious but achievable goal of doubling our nation's generation of electric and clean energy," explained Zichal. "That means investing heavily in wind and incentivizing other renewable power."